Question :
161.WhichofthefollowingisnotawidelyacknowledgedproblemwithusingtheCPIasameasureofthecostofliving?
a.substitutionbias
b.introductionofnewgoods
c.unmeasuredqualitychange
: 1261692
161.WhichofthefollowingisnotawidelyacknowledgedproblemwithusingtheCPIasameasureofthecostofliving?
a.substitutionbias
b.introductionofnewgoods
c.unmeasuredqualitychange
d.unmeasuredpricechange
162.Thethreeproblemswithusingtheconsumerpriceindexasameasureofthecostoflivingare
a.widelyacknowledgedandeasytosolve.
b.widelyacknowledgedanddifficulttosolve.
c.nearlyunacknowledgedandeasytosolve.
d.nearlyunacknowledgedanddifficulttosolve.
163.Whentherelativepriceofagoodincreases,consumersrespondbybuying
a.alargerquantityofthatgoodandalargerquantityofsubstitutesforthatgood.
b.alargerquantityofthatgoodandasmallerquantityofsubstitutesforthatgood.
c.asmallerquantityofthatgoodandalargerquantityofsubstitutesforthatgood.
d.asmallerquantityofthatgoodandasmallerquantityofsubstitutesforthatgood.
164.Whentherelativepriceofagooddecreases,consumersrespondbybuying
a.alargerquantityofthatgoodandalargerquantityofsubstitutesforthatgood.
b.alargerquantityofthatgoodandasmallerquantityofsubstitutesforthatgood.
c.asmallerquantityofthatgoodandalargerquantityofsubstitutesforthatgood.
d.asmallerquantityofthatgoodandasmallerquantityofsubstitutesforthatgood.
165.Supposethepriceofaquartofmilkrisesfrom$1.00to$1.20andthepriceofaT-shirtrisesfrom$8.00to$9.60.IftheCPIrisesfrom150to195,thenpeoplelikelywillbuy
a.moremilkandmoreT-shirts.
b.moremilkandfewerT-shirts.
c.lessmilkandmoreT-shirts.
d.lessmilkandfewerT-shirts.
166.Supposethepriceofagallonoficecreamrisesfrom$4to$5andthepriceofacanofcoffeerisesfrom$2to$2.50.IftheCPIrisesfrom150to 177,thenpeoplelikelywillbuy
a.moreicecreamandmorecoffee.
b.moreicecreamandlesscoffee.
c.lessicecreamandmorecoffee.
d.lessicecreamandlesscoffee.
167.Supposethepriceofasix-packofcolarisesfrom$3to$3.75andthepriceofapackofmintsrisesfrom$1.25to$1.75.IftheCPIrisesfrom140to 182,thenpeoplelikelywillbuy
a.morecolaandmoremints.
b.morecolaandfewermints.
c.lesscolaandmoremints.
d.lesscolaandfewermints.
168.Supposethepriceforonegallonofgasolinerisesfrom$3.50to$4.00andthepriceofonegallonofmilkrisesfrom$3.00to$3.20.If theCPIrisesfrom 120to132, thenpeoplelikely willbuy
a.moregasolineandmoremilk.
b.moregasolineandfewermilk.
c.lessgasolineandmoremilk.
d.lessgasolineandfewermilk.
169.Oneproblemwiththeconsumerpriceindexstemsfromthefactthat,overtime,consumerstendtobuylargerquantitiesofgoodsthathavebecomerelativelylessexpensiveandsmallerquantitiesofgoodsthathavebecomerelativelymoreexpensive.Thisproblemiscalled
a.price-changeneglect.
b.unmeasuredqualitychange.
c.substitutionbias.
d.relativebias.
170.Thesubstitutionbiasintheconsumerpriceindexreferstothe
a.substitutionbyconsumerstowardnewgoodsandawayfromoldgoods.
b.substitutionbyconsumerstowardasmallernumberofhigh-qualitygoodsandawayfromalargernumberoflow-qualitygoods.
c.substitutionbyconsumerstowardgoodsthathavebecomerelativelylessexpensiveandawayfromgoodsthathavebecomerelativelymoreexpensive.
d.substitutionofnewpricesforoldpricesintheCPIbasketofgoodsandservicesfromoneyeartothenext.